In direct competition to Uniswap, DeFi protocol Cream Finance announced its native dynamic and efficient Automated Market Maker (AMM) – creamY. The announcement reads that creamY will offer dynamic pool updates built using similar concepts that of Balancer, Uniswap, Curve, and Blackholeswap.
Announcing creamY, a Capital Efficient, Dynamic AMM.
– Dynamic pool updates
– Yielding, stable versions of assets
– Consolidated Liquidity to avoid fragmented pools
– Single-Sided Liquidityhttps://t.co/cTcKEfJ7LA
— Cream Finance 🍦 (@CreamdotFinance) September 20, 2020
To avoid any king of fragmented pools, the creamY version V1 will focus on consolidated liquidity, low slippages and fees associated with stable assets. The version v2 of creamY will facilitate and handle other volatile assets.
Looking at the massive trading volumes, the need for automated market makers (AMMs) has surged recently. However, the AMM marketplace seems to be already crowded enough at present. Interestingly, this is not the first AMM launch by Cream Finance. Just over 15 days back, Cream announced ‘Swap’ AMM that lets users switch their collaterals without having to leave the platform.
The newly announced creamY AMM brings some added benefits over Swap. It now allows governance token holders and liquidity providers to add and remove trading pairs. Moreover, Cream Finance explains that as more assets and market go live, there increase concerns of liquidity fragmentation. The concept of updatable pools by Balancer allows the addition and removal of an asset thereby taking a dynamic approach.
“creamY combines these two core approaches to create a dynamically updateable AMM which consolidates liquidity while providing the best qualities of the AMMs it borrows from,” said Cream Finance.
Now, the pool itself will serve as a tradable asset. Thus, liquidity providers won’t have to offer equal shares of each asset which will also reduce slippages for not having the other asset.
Cream Finance has mentioned that the creamY code is still in the production testing phase and unaudited. Thus, it has asked investors to maintain caution. Besides, the platform plans to soon launch incentive rewards in form of CREAM tokens. Longer staking period and time commitments will attract greater rewards.
Cream Finance Burns Over 6 Million CREAM Tokens
On Sunday, September 20, lending platform CREAM carried out a token burn while eliminating 67.5% of its total supply. This burn includes 100% of governance tokens and 75% of seed tokens.
“We believe that this action will provide greater certainty to the current token holders while creating a stronger foundation for long-term success of the project,” the platform noted.
As per the data by CoinMarketCap, the price of the CREAM token has tanked 10% in the last 24 hours. At press time, CREAM token is trading at $103 with a market cap of $15.5 million. Using a few concepts of Compound Finance and Balancer, CREAM Finance aims to become a completely decentralized platform for the lending ecosystem.